For auctioneersHow to Run an Online Auction: A Step-by-Step Guide for Auction Houses
To run an online auction, set your terms (buyer's premium, tax, payment and pickup), catalog every lot with clear photos and honest condition notes, choose when bidding opens and how lots close, promote the sale for about a week, watch the live board as lots close, then invoice winners, collect payment and hand out items.
What do you need before you start?
An online sale needs the same things as a live one, written down in advance. Bidders can't ask you at the podium, so the sale page has to answer their questions for you.
- Your terms: buyer's premium, sales tax, accepted payment methods and the payment deadline.
- Pickup details: address, pickup times and a remove-by date, or a shipping option.
- Software that runs timed bidding and takes payments. See online auction software.
- Any license your state requires. In Texas, auctioneers are licensed by TDLR.
- Space to stage, photograph and store lots until pickup.
How do you catalog lots for an online sale?
Group items into lots a bidder would want as a unit, then give each a lot number, a title with brand and model, several photos, and condition notes that name every flaw. Use plain condition words (new, open box, used, damaged or for parts) and say whether each item is tested or untested.
Use the fastest input for each kind of stock: scan barcodes on retail goods, photograph one-of-a-kind items, and import spreadsheets for manifests. Our guide to cataloging auction items covers the details.
How should you set up the sale schedule?
Your schedule decides how sale day feels. A 200-lot sale closing 20 seconds apart takes about 67 minutes to close, plus any soft-close extensions.
- Pick the opening time, usually as soon as the catalog is complete.
- Pick the first close, often a weekday evening when bidders are home.
- Set the gap between lots: 15 to 30 seconds for big general sales, longer for fewer high-value lots.
- Set the soft-close window; 2 minutes is a common choice.
- Set reserves only where you truly can't sell below a price.
How do you get bidders to your sale?
List the sale as early as you can and promote its best lots by name: brand, model and a clear photo. Email your bidder list when bidding opens and again the day before the close, and post the direct link wherever your buyers already look.
Remove friction too. Show the full price with premium and tax, keep pickup hours generous, and offer shipping on lots that can ship. More tips are in how to get more bidders.
What happens on closing day and after?
Watch the live board as lots close: high bid, bid count, reserve status and clock. Answer bidder questions quickly, and never change terms mid-sale.
When the last lot closes, send invoices right away, while winners are still paying attention. Collect payment online or at pickup, mark other payments as paid, and match each paid invoice to its lots at the pickup table. Labels with lot numbers make this fast. For lots that ship, mark each one shipped with the carrier and tracking number so the winner can follow it.
What mistakes cost auction houses the most?
Most problems trace back to something bidders didn't know before they bid.
- Vague titles like 'box lot' that nobody searches for.
- Hiding the buyer's premium or shipping until the invoice.
- Closing hundreds of lots at the same second.
- Pickup windows too short for bidders who work.
- No plan for winners who don't pay: set a payment deadline and enforce it.
Questions people ask
Can I run an online auction without my own website?
Yes. A marketplace hosts the sale page, bidding and invoices for you. On Auktia, your sale also shows up in search, category browsing and Near me for bidders close by.
How long does it take to set up an online auction?
The setup screens take minutes; cataloging takes the time. At two minutes a lot, a 200-lot sale is under 7 hours of work, and barcode scanning or spreadsheet import can cut that sharply.
How long should bidding stay open?
Long enough for bidders to find the sale and come back to it. Several days to a week is common for timed sales, with the first lot closing at a time most bidders are free.
What should I do if a winner doesn't pay?
Follow your written terms: send a reminder, then cancel the win after the deadline and offer the lot to the next bidder or relist it. Block repeat non-payers. See what happens when a winner doesn't pay.
Do I charge sales tax on online auction sales?
Generally yes, on taxable items sold to buyers without a resale certificate; Texas rates run up to 8.25%. Rules vary by item and buyer, so read our Texas auction sales tax guide and check with the Texas Comptroller or an accountant.
Should I offer shipping in an online auction?
Offer it on small, sturdy lots if you can pack well, since it widens your audience beyond driving distance. Keep furniture and fragile items pickup only, and show the shipping price on each lot or say it will be added to the invoice.